NEW YORK (TheStreet) -- TheStreet’s Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said he is reducing his exposure to the retail and restaurant industries simply because they aren't giving him a reason to invest in them right now.
On CNBC’s “Cramer’s Mad Dash” segment, he pointed out the disappointing earnings report from Red Robin Gourmet Burgers (RRGB), which missed revenue and earnings expectations.
Noodles & Company (NDLS) also disappointed investors with a top- and bottom-line miss, and both stocks are down roughly 20% on Thursday as a result.
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Cramer said too many companies are trying to become the next Chipotle Mexican Grill (CMG), but are struggling to do so, pointing out that Noodles is having problems generating sales in the mid-Atlantic.
The whole industry is “spotty,” he said, “except for Chipotle.”
- - Written by Bret Kenwell in Petoskey, Mich.